Leader of Opposition in the Lok Sabha, Rahul Gandhi, expressed grave concern over India's economic slowdown on Sunday, highlighting that the country's Gross Domestic Product (GDP) growth rate has plummeted to its lowest in two years, standing at just 5.4 per cent. Gandhi attributed this downturn to an economy that, according to him, disproportionately benefits a small group of billionaires, while farmers, workers, the middle class, and the poor continue to face persistent economic hardships.
In a tweet shared on X (formerly Twitter), Gandhi said, "The Indian economy cannot progress as long as its benefits are accruing only to a handful of billionaires, while the farmers, laborers, middle class, and the poor are struggling with various economic problems."
Rising inflation and declining purchasing power
Gandhi pointed to several worrying indicators in the economy, particularly the rise in retail inflation, which has reached a 14-month high of 6.21 per cent. He noted that the prices of essential commodities like potatoes and onions have surged by nearly 50 per cent compared to the same period last year, placing a significant burden on the common man.
Further, the Congress leader drew attention to the alarming depreciation of the Indian Rupee, which has fallen to a record low of ₹84.50 against the US dollar, exacerbating inflationary pressures. Additionally, he highlighted the country's record-high unemployment rate, which has reached its highest point in 45 years.
Stagnant wages and declining demand
Gandhi also criticized the government for the stagnation or decline in the income levels of workers, employees, and small businesses over the past five years. He claimed that this stagnation has led to a significant reduction in demand, further weakening the economy.
According to Gandhi, the share of affordable cars, priced under ₹10 lakh, has fallen to less than 50 per cent of total sales, down from 80 per cent in 2018-19. Similarly, the share of affordable homes in total sales has dropped from 38 percent to 22 percent in the last year alone.
As consumer purchasing power diminishes, the demand for Fast-Moving Consumer Goods (FMCG) products is also witnessing a decline, Gandhi said.
Falling corporate tax and manufacturing share
The former Congress President further pointed out that corporate tax revenue has decreased by 7 per cent in the past decade, while income tax collections have risen by 11 per cent. This, he said, signals a regressive tax structure that burdens the middle class while letting large corporations off the hook.
Gandhi also highlighted the adverse effects of demonetization and the Goods and Services Tax (GST) on the manufacturing sector, which has seen its share of the economy fall to a 50-year low of just 13 percent. This drastic decline in manufacturing, Gandhi argued, raises serious questions about the future of job creation in India.
Call for economic reforms
In light of these alarming economic indicators, Gandhi stressed the need for a complete overhaul of the country’s economic policies. He called for "a new thinking" to address the issues facing the economy and proposed a "new deal" for businesses, where everyone would be given an equal opportunity to prosper. Only through such inclusive growth, Gandhi said, can the "wheel of our economy" begin to turn forward again.
"We need to focus on creating equal opportunities for everyone to move forward," Gandhi concluded, urging the government to take urgent steps to revive the economy and ensure the welfare of all sections of society.
